The Federal Board of Revenue (FBR) has announced a decisive move to freeze the bank accounts of individuals and businesses that fail to register for sales tax in the upcoming fiscal year 2025–26. The announcement was made by FBR Chairman Rashid Mahmood Langrial during a meeting of the National Assembly’s Standing Committee on Finance, chaired by Syed Naveed Qamar.
The FBR chief stated that non-registered entities will receive formal notices, and if they do not comply, their bank accounts will be frozen. However, accounts will be restored within two days of completing the registration process. The initiative targets businesses that file income tax returns but are not registered for sales tax—particularly large industrial units.
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The FBR highlighted that many factories, including those in Karachi, are operating with multiple industrial meters and making billions in unregistered sales. These businesses are now under scrutiny for evading proper tax documentation and registration.
Committee member Usman Ahmed Mela raised objections to the idea of sealing properties of non-compliant businesses, calling it too harsh. Chairman Langrial clarified that the enforcement measures would apply only to large-scale manufacturers and would not affect small retailers or cottage industries.
